Carlsbad, CA - ViaSat, Inc. (Nasdaq: VSAT) today announced record revenues of $100.0 million, new net contract awards of $129.3 million, and backlog of $391.2 million for the quarter ended July 1, 2005. In addition, the company reported net income of $0.22 per share on a pro forma basis or $0.18 per share on a GAAP basis and strong cash flows from operations of $6.8 million.

"We earned solid financial results and achieved significant business milestones in our first quarter," said Mark Dankberg, chairman and CEO of ViaSat. "The MIDS production contract award was our largest ever, and indicates a strong competitive position. Both WildBlue and Telesat of Canada began Ka-band broadband service in North America and we began shipping our DOCSIS®-for-satellite production modems in volume. Plus, our strong backlog and continued positive cash flow create a solid foundation going forward."

Financial Results
For the first quarter ended July 1, 20051, the company reported the following financial results:

1 - ViaSat uses a 52- or 53-week fiscal year which ends on the Friday closest to March 31. ViaSat's quarters for fiscal year 2006 end on July 1, 2005, September 30, 2005, December 30, 2005 and March 31, 2006.

2 - All non-GAAP pro forma numbers have been adjusted to exclude the effects of acquisition charges (amortization of intangible assets). A reconciliation of specific adjustments to GAAP results for these periods is included in the "Pro Forma Condensed Consolidated Statement of Operations" table contained in this release. A description of our use of non-GAAP information is provided under "Use of Pro Forma Financial Information."

Government Segment
The Government segment had quarterly revenues of $53.5 million, a 40.6% increase over the first quarter of fiscal year 2005. The revenue growth was primarily related to increased sales of tactical data link products partially offset by reductions in information assurance and mobile satellite communication product sales. New contract awards were $81.3 million, raising the Government segment backlog to over $222 million.

Commercial Segment
Revenues from our Commercial segment were $47.5 million for the first quarter, which were essentially flat from the first quarter of fiscal year 2005. The Antenna Systems product line revenue of $10.6 million was an increase of 6.3% over the first quarter of last fiscal year. This revenue was offset by a reduction of Satellite Networks product line revenues of 1.4% to $37.0 million from the first quarter of 2005. New contract awards were $48.1 million, raising the Commercial segment backlog to $169 million.

Select First Quarter 2006 Business Highlights

• Achieved a new record competitive order of $60.0 million for our Multifunctional Information Distribution System (MIDS) Low Volume Terminals (MIDS-LVT), including both LVT(1) airborne and LVT(2) ground-based terminals.
• Settled an outstanding legal dispute with a subcontractor on our MIDS program for $4.75 million. The pre-tax gain recorded from the settlement was $2.7 million.
• Won a development contract to demonstrate how our programmable KG-250 inline network encryptor can enable the U.S. Air Force to meet its current Telemetry Tracking and Control (TT&C) security requirements at lower cost, while providing a simplified growth path to a more network centric TT&C architecture.
• Increased sales of our commercial VSAT (Very Small Aperture Terminal) products into joint military networks including a $3.2 million contract to supply our LINKWAY® networking system to DataPath for its compact, trailer-based satellite telecommunications earth station for sustained and reliable telecommunications in the field.
• Awarded a funded development contract in our Comsat Laboratories business from NASA to design and deliver a Space Communications Testbed (SCT) which emulates the nodes and links comprising an end-to-end inter-planetary communication network.
• Delivered over 12,000 DOCSIS-for-satellite broadband modems in support of WildBlue Communications and Telesat of Canada's launches of Ka-band broadband service in North America.
• Ranked as the Top VSAT Vendor in India by Voice & Data magazine in its annual "V&D 100" issue profiling the top telecommunications companies in the country, jumping ahead of the two long-time incumbents. The rankings are based on annual revenue from VSAT sales in India.

Safe Harbor Statement

Portions of this release, particularly ViaSat financial prospects for fiscal year 2006 and beyond and the "Selected First Quarter 2006 Business Highlights" section, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. ViaSat wishes to caution you that there are some factors that could cause actual results to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including but not limited to: ViaSat's ability to perform under existing contracts and obtain additional contracts; ViaSat's ability to develop new products that gain market acceptance; possible cost overruns in fixed price development contracts; changes in product supply, pricing and customer demand; changes in relationships with, or the financial condition of, key customers or suppliers; changes in government regulations; changes in economic conditions globally and in the communications markets in particular; increased competition; potential product liability; infringement and other claims; and other factors affecting the communications industry generally. ViaSat refers you to the documents it files from time to time with the Securities and Exchange Commission, specifically the section titled Factors That May Affect Future Performance in ViaSat Form 10-Ks and subsequent Form 10-Qs. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements.

Conference Call

ViaSat Inc. will host a conference call to discuss these fiscal year 2006 first quarter results at 5:00 P.M. Eastern Time on Thursday, August 4, 2005. The dial-in number is (866) 314-9013 and (617) 213-8053 internationally. The passcode is 39047015. A replay will be available for 24 hours beginning at 7:00 P.M. August 4 at (888) 286-8010. The passcode is 76892960. You can also access our conference call webcast and other material financial information discussed on our conference call (including any information required by Regulation G) on the Investor Relations Events Calendar page of our corporate web site (www.viasat.com). The call will be archived and available on that site for at least twelve months immediately following the conference call.

Use of Pro Forma Financial Information

Pro forma net income (loss) excludes the effects of acquisition charges (amortization of intangible assets). Pro forma net income is provided to enhance the overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the pro forma results provide useful information to both management and investors by excluding specific expenses that we believe are not indicative of our core operating results. In addition, since we have historically reported pro forma results to the investment community, we believe the inclusion of pro forma numbers provides consistency in our financial reporting. Further, these adjusted pro forma results are one of the primary indicators management uses for planning and forecasting in future periods. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles. See the "Pro Forma Condensed Consolidated Statement of Operations" table for a reconciliation of net income (loss) to pro forma net income (loss).

Find a PDF of our Q1 FY06 financial tables on viasat.com.

Comsat Labs and Comsat Laboratories are tradenames of ViaSat Inc. Neither Comsat Labs nor Comsat Laboratories is affiliated with COMSAT Corporation. "Comsat" is a registered trademark of COMSAT Corporation.
DOCSIS is a registered trademark of Cable Television Laboratories Inc.

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